Tulloch PriestCo-founder, Gas Engineer Software · Co-founder of Gas Engineer Software

There Are Two Ways to Price Your Work

22 Apr 2026 · 1 min

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In this segment, the speaker argues that engineers often undercharge for their services by focusing solely on covering costs and overhead. He introduces the concept of value‑based pricing, urging professionals to consider the value they deliver to the client and the client’s willingness to pay. The speaker notes a common psychological barrier: engineers view a daily rate (e.g., £350) as high and therefore keep prices low, which is a rigid, cost‑centric mindset. By shifting perspective to the customer’s problem‑solving needs, engineers can price more appropriately and capture the true value of their work.

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You could actually be undercharging, not just for the costs and your overhead, but you could be undercharging based on the, on the value you're providing your customer as well. Sometimes there's a psychological barrier there when engineers end up undercharging because they think that, say, charging maybe £350 a day is a lot of money. It's very rigid thinking because when you're looking at things purely on a cost overhead margin basis, you're looking at things from your perspective. But there's also a different perspective from, from the customer's point of view as to the problems you're solving for them and what they're willing to exchange to have that provided by your business.